COMMISSIONER OF SALES TAX Vs. TULSIRAM BHAGWANDAS

JUDGEMENT

(1.) THIS is a reference under Section 44 (1) of the madhya Pradesh General Sales Tax Act, 1958 (for short, hereinafter referred to as the Act) at the instance of the Department, whereby the following question has been referred by the Sales Tax Tribunal (Board of Revenue, Madhya Pradesh, gwalior), for our answer :-

(2.) THE material facts, available from the Statement of the Case, giving rise to the present reference, are these: The relevant year of assessment is the Diwali year 1971 -72. The assessee deals in hardware and iron goods. He was assessed tax under the Act for the abovesaid assessment year. Deductions were allowed to him under Section 2 (r) (ii) of the Act in respect of sale of G. I. sheets, which were purchased after payment of tax. Penalty of Rs. 1,200/- was also imposed on the assessee under Section 17 (3) of the Act. The assessee filed first and second appeals against the assessment. In second appeal before the Tribunal, the only point agitated was that penalty could not have been imposed under Section 17 (3) of the. Act.

(3.) THE Tribunal partly accepted the contention of the assessee and reduced the amount of penalty to Rs. 600/ -. Thereafter, the assessment was reopened on the ground that in the initial assessment, galvanised sheets were treated as taxable at the first point and deduction was allowed under Section 2 (r) (ii) of the act. The assessing authority found that the galvanised sheets were declared goods and were taxable at the last point and not at the first point. Hence, holding that the deduction that was granted to the assessee earlier was improper, the sale of galvanised sheets was assessed to tax, the tax being Rs. 910. 98.